Valuation: Top-Down, Three-Step Approach

Top-Down Valuation Methodology

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Question

Which of the following is the correct order of the steps (from first to last) of the top-down, three-step approach to valuation?

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A. B. C. D.

A

Analysis of alternative countries and regions is considered part of analysis of the economy and security markets. The steps follow a top-down approach, with the most general category (the economy) followed by more specific areas (industries and then individual firms).